Question 1

When customers send their remittances electronically to the company's bank,this is called

Accepted Answer

A) FEDI. 
B) EFT. 
C) to use procurement cards. 
D) an electronic lockbox. 
A) FEDI. 
B) EFT. 
C) to use procurement cards. 
D) an electronic lockbox.

Question 2

Describe four threats and identify appropriate controls for each threat in the revenue cycle.

Accepted Answer

Threat 1: Sales to customers with poor c

Question 3

Matching customer accounts and inventory item numbers to the information in the customer and inventory master files is an example of a

Accepted Answer

A) completeness test 
B) field check 
C) reasonableness test 
D) validity check 
A) completeness test 
B) field check 
C) reasonableness test 
D) validity check

Question 4

In billing systems,the __________ is sent to the customer that summarizes all transactions occurring during a given period of time and it indicates the amount due.

Accepted Answer

A) remittance list 
B) monthly statement 
C) invoice 
D) aging report 
A) remittance list 
B) monthly statement 
C) invoice 
D) aging report

Question 5

Responding to customer inquiries and general customer service is an important aspect in the revenue cycle.Since customer service is so important,software programs have been created to help manage this function.These special software packages are called

Accepted Answer

A) EDI systems. 
B) POS systems. 
C) VMI systems. 
D) CRM systems. 
A) EDI systems. 
B) POS systems. 
C) VMI systems. 
D) CRM systems.

Question 6

When a customer pays off the balance on an invoice,the transaction is credited to the __________ file.

Accepted Answer

A) customer master 
B) sales transaction 
C) cash receipts 
D) All of the above are correct. 
A) customer master 
B) sales transaction 
C) cash receipts 
D) All of the above are correct.

Question 7

Which of the activities listed below is not part of the revenue cycle?

Accepted Answer

A) sales order entry 
B) shipping 
C) receiving 
D) billing 
A) sales order entry 
B) shipping 
C) receiving 
D) billing

Question 8

What is the primary objective of the revenue cycle?

Accepted Answer

A) to maximize revenue and minimize expense 
B) to reduce outstanding accounts receivable balances through increased cash sales 
C) to provide the right product in the right place at the right time at the right price 
D) to sell as much product as possible and/or to maximize service billings 
A) to maximize revenue and minimize expense 
B) to reduce outstanding accounts receivable balances through increased cash sales 
C) to provide the right product in the right place at the right time at the right price 
D) to sell as much product as possible and/or to maximize service billings

Question 9

Which of the following is an example of a wireless technology used to increase the efficiency of picking and packing products for shipment?

Accepted Answer

A) Bar codes 
B) RFID 
C) OCR 
D) laser scans 
A) Bar codes 
B) RFID 
C) OCR 
D) laser scans

Question 10

In Petaluma,California,electric power is provided to consumers by the Power To The People Electrical Company,a local co-op.Each month PTTP mails bills to 70,000 households and then processes payments as they are received.The customers are provided with a remittance advice,which is a

Accepted Answer

A) warning that failure to pay by the due date will result in a late charge. 
B) confirmation of the firm's privacy policy. 
C) turnaround document. 
D) bill. 
A) warning that failure to pay by the due date will result in a late charge. 
B) confirmation of the firm's privacy policy. 
C) turnaround document. 
D) bill.

Question 11

Well-designed AIS controls must ensure that all transactions are authorized,valid,and properly recorded.In addition,there are three other AIS objectives.Which is not an AIS objective?

Accepted Answer

A) transactions are recorded accurately 
B) transactions are matched into the proper time period 
C) assets are safeguarded from loss or theft 
D) business activities are performed efficiently and effectively 
A) transactions are recorded accurately 
B) transactions are matched into the proper time period 
C) assets are safeguarded from loss or theft 
D) business activities are performed efficiently and effectively

Question 12

For a given order,assume that goods have been picked for shipment and the items and quantities have been entered into the system.Which system update below is not triggered by these actions?

Accepted Answer

A) any back orders are initiated 
B) inventory quantities are updated 
C) the customer accounts receivable is posted 
D) shipping documents such as the bill of lading are produced 
A) any back orders are initiated 
B) inventory quantities are updated 
C) the customer accounts receivable is posted 
D) shipping documents such as the bill of lading are produced

Question 13

A number of edit checks should be performed to ensure that all of the data required to process an order have been collected and accurately recorded.The edit check that compares a quantity being ordered to past history for that item and customer is called

Accepted Answer

A) a validity check. 
B) a reasonableness test. 
C) a completeness test. 
D) a limit check. 
A) a validity check. 
B) a reasonableness test. 
C) a completeness test. 
D) a limit check.

Question 14

Discuss ways in which information technology can be used to streamline cash collections.

Accepted Answer

Answers may include the following points

When customers send their remittances electronically to the company's bank,this is called

Describe four threats and identify appropriate controls for each threat in the revenue cycle.

Matching customer accounts and inventory item numbers to the information in the customer and inventory master files is an example of a

In billing systems,the __________ is sent to the customer that summarizes all transactions occurring during a given period of time and it indicates the amount due.

Responding to customer inquiries and general customer service is an important aspect in the revenue cycle.Since customer service is so important,software programs have been created to help manage this function.These special software packages are called

When a customer pays off the balance on an invoice,the transaction is credited to the __________ file.

Which of the activities listed below is not part of the revenue cycle?

What is the primary objective of the revenue cycle?

Which of the following is an example of a wireless technology used to increase the efficiency of picking and packing products for shipment?

In Petaluma,California,electric power is provided to consumers by the Power To The People Electrical Company,a local co-op.Each month PTTP mails bills to 70,000 households and then processes payments as they are received.The customers are provided with a remittance advice,which is a

Well-designed AIS controls must ensure that all transactions are authorized,valid,and properly recorded.In addition,there are three other AIS objectives.Which is not an AIS objective?

For a given order,assume that goods have been picked for shipment and the items and quantities have been entered into the system.Which system update below is not triggered by these actions?

A number of edit checks should be performed to ensure that all of the data required to process an order have been collected and accurately recorded.The edit check that compares a quantity being ordered to past history for that item and customer is called

Discuss ways in which information technology can be used to streamline cash collections.

Accounting Information Systems

Overview of Business Processes

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Control and Accounting Information Systems

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

Auditing Computer-Based Informtion Systems

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, Implementation and Operation

Filters

Exam 10: The Revenue Cycle: Sales an Cash Collections

When customers send their remittances electronically to the company's bank,this is called

Describe four threats and identify appropriate controls for each threat in the revenue cycle.

Matching customer accounts and inventory item numbers to the information in the customer and inventory master files is an example of a

In billing systems,the __________ is sent to the customer that summarizes all transactions occurring during a given period of time and it indicates the amount due.

Responding to customer inquiries and general customer service is an important aspect in the revenue cycle.Since customer service is so important,software programs have been created to help manage this function.These special software packages are called

When a customer pays off the balance on an invoice,the transaction is credited to the __________ file.

Which of the activities listed below is not part of the revenue cycle?

What is the primary objective of the revenue cycle?

Which of the following is an example of a wireless technology used to increase the efficiency of picking and packing products for shipment?

In Petaluma,California,electric power is provided to consumers by the Power To The People Electrical Company,a local co-op.Each month PTTP mails bills to 70,000 households and then processes payments as they are received.The customers are provided with a remittance advice,which is a

Well-designed AIS controls must ensure that all transactions are authorized,valid,and properly recorded.In addition,there are three other AIS objectives.Which is not an AIS objective?

For a given order,assume that goods have been picked for shipment and the items and quantities have been entered into the system.Which system update below is not triggered by these actions?

A number of edit checks should be performed to ensure that all of the data required to process an order have been collected and accurately recorded.The edit check that compares a quantity being ordered to past history for that item and customer is called

Discuss ways in which information technology can be used to streamline cash collections.

Accounting Information Systems

Overview of Business Processes

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Control and Accounting Information Systems

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

Auditing Computer-Based Informtion Systems

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, Implementation and Operation

Filters